abounly

iTrader: (27)

Well, this'll be my first time selling a car and i believe its kinda difficult.

I bought a car from someone to use it as a "parts" car. Signed pink and everything since i was using it as a parts car i didn't bother registering it. Now I have to get the car out of my friends house since his parents do not want it sitting there anymore.

The guy who's buying it plans on fixing the car up and have it back up and running.

I was wondering what would I have to do to complete the sale? Do I just give him the pink slip / bill of sale?

caddyowner

In Michigan, you'd have to go the Secretary of State to complete the initial sale, pay sales tax on the stated purchase price plus a penalty for not applying for a title within the specified timeframe, and get a title issued in your name. Then you could transfer the title to the next buyer.

In CA, YMMV.

IceSC

iTrader: (2)

Just go to the DMV or AAA if you have it, they will take care of things, although painfully slowly in the case of the DMV. It sounds like you may have to pay tax on your car before you are able to sell unfortunately.

KillaIS250

iTrader: (1)

From what i understand, under CA law, you have to register the car, pay any and all fee's due (Past registration, SMOG, etc) then you can sell the car. Some people say they have sold a parts car just like that, no registration, but not sure how you send in a release of liability then, and you really need to send that in.

wntrwhte

If going to be made road legal, it will have to be sold with a title...did you never apply for a title?

(in some states, like NH, parts cars can be sold without title so long as the new owner knows they can never register the vehicle)

abounly

iTrader: (27)

I went to the DMV earlier today, waited 2 hours to ask a simple question. But anyways the rep told me that its possible to sell the car without registering it. He gave me a vehicle transfer and reassignment form. Told me to fill that with my information and the buyers info with a bill of sale and i should be good.

I feel like thats just to easy though..

mmarshall

Sounds fair enough to me. A car that is not in running condition, and only used for parts, is not usable and generally should not be taxed (in states that have annual personal-property-tax) or registered. Otherwise, junkyards would have to register every single clunker they have lying around the lot missing a bunch of parts.

However, because it was a formal transaction in your state, it may (?) be subject to the general sales-tax (which most states have), even if it is not a usable automobile or subject to a used-car sales-tax..

AlterZgo

OK - You're the seller. Therefore, you do not pay any tax. Buyer will have to pay sales tax if he registers the car with the DMV.

All you have to do is fill out the transfer form, sign over the pink slip, detach the release of liability form from the pink slip, fill it out and turn it in. Make sure you do the release of liability form or you will end up getting stuck with traffic tickets, and possibly worse if the guy repairs the car and ends up getting into an accident with it without transferring title out of your hands to himself first.

PureDrifter

iTrader: (10)

iirc in CA you need a REG262 dmv form (not avail online, security paper) to sell the vehicle on bill of sale, transfer the title, and waive the smog requirements for a normal vehicle sale.

buyer is still liable for taxes and becomes responsible for any work needed since HE would be the one trying to register the vehicle for road use.

IceSC

iTrader: (2)

Not to alarm you, but it sounds like you don't own the car...when you report the sale to the DMV with a price, you need to pay tax on it, which from what I understand you didn't do.

PureDrifter

iTrader: (10)

i must have missed that part, so you didnt transfer the title to your name when you bought the car?? (transferring title =/= registering car)

abounly

iTrader: (27)

Yeah I think the release of liability is what i am scared of the most for my situation.

Actually there is a online form i can use.

I have the REG262 form, so i am good there. I check Sacramento DMV and there is no lien/fees on the car besides the registration.


I kinda had a feel something like that has happened. But i do have the pink slip with my information filled out on the backside of the pink. So technically i own it? Thats true i did not report to the DMV when i purchased the vehicle.

So if i am correct i need

Bill of Sale
Pink Slip
Vehicle Vessel Transfer and Reassignment Form (REG262)
Release of liability online filled out (REG138)

Should be good by then i hope. Please correct me if i am wrong.